Post by filip on Apr 10, 2024 13:59:13 GMT
Thank you, The Money Platform .
Although I don't agree with the statement "Now that all peer-to-peer firms have a properly funded wind-down plan I think this will certainly help rebuild some trust. Those left in the industry at this point tend to be fairly well tested.", you just have to look at some companies publicly available financials to see that it's not necessarily true but they only show partial information and picture of a company's financial standing and resources.
I would however agree that some of the current platforms are stronger than many defunct platforms.
All investment comes with risk so due diligence and understanding what you invest in is key for successful investment performance (and a good night's sleep), regardless of asset class or company.
Edit: personally, I don't believe that a platform's WDP has been a strong selling point to lenders. Indeed, a firm's WDP only seem to matter when it fails. It would be very difficult, if possible, to know if a WDP will perform as expected as it depends on many variables whose outcomes are unknown (I am yet to hear about anyone that can model and predict the future). It will depend very much on the platform's management team's integrity (which can be assessed in the way that a platform conducts itself and its communications with lenders. Management team's with integrity act with honesty and transparency. Management team's with little integrity do the opposite).
What has been appears to be frequent flow of ravishingly exciting new loan opportunities, herd mentality (biggest/most popular must be good) and incentives/boastful marketing. These are common features that apply to most financial products, not only to P2P. Clearly, better investor education is needed as they keep falling for the same tricks over and over again. So any changes to current WDP rules would in my view have very little, if any, effect on how platforms conduct themselves and what lenders continue to prefer.
Filip
Although I don't agree with the statement "Now that all peer-to-peer firms have a properly funded wind-down plan I think this will certainly help rebuild some trust. Those left in the industry at this point tend to be fairly well tested.", you just have to look at some companies publicly available financials to see that it's not necessarily true but they only show partial information and picture of a company's financial standing and resources.
I would however agree that some of the current platforms are stronger than many defunct platforms.
All investment comes with risk so due diligence and understanding what you invest in is key for successful investment performance (and a good night's sleep), regardless of asset class or company.
Edit: personally, I don't believe that a platform's WDP has been a strong selling point to lenders. Indeed, a firm's WDP only seem to matter when it fails. It would be very difficult, if possible, to know if a WDP will perform as expected as it depends on many variables whose outcomes are unknown (I am yet to hear about anyone that can model and predict the future). It will depend very much on the platform's management team's integrity (which can be assessed in the way that a platform conducts itself and its communications with lenders. Management team's with integrity act with honesty and transparency. Management team's with little integrity do the opposite).
What has been appears to be frequent flow of ravishingly exciting new loan opportunities, herd mentality (biggest/most popular must be good) and incentives/boastful marketing. These are common features that apply to most financial products, not only to P2P. Clearly, better investor education is needed as they keep falling for the same tricks over and over again. So any changes to current WDP rules would in my view have very little, if any, effect on how platforms conduct themselves and what lenders continue to prefer.
Filip